VERBUND successfully issues Austria's first green bond

11/14/2014Vienna

The first green bond of a company from a German-speaking country- only pre-defined environmentally friendly projects are carried out, the duration: 10 years, coupon: 1.5%.

13 November 2014 saw VERBUND AG successfully release a green bond onto the capital market. The green bond, which is the first from a company in the German-speaking region, has a volume of EUR 500 million and will run until 2024. VERBUND is thus reinforcing its mission statement of being an environmentally friendly and sustainably operating company. The annual coupon of the 10-year bond amounts to 1.5%. The green bond was more than 3-times oversubscribed and has been placed to very great success with Austrian and international investors. The bond has been in especially high demand among those investors acting in an environmentally and socially responsible manner, who have subscribed for two thirds of the issuance.

The proceeds from the bond are intended exclusively for the financing and refinancing of energy efficiency measures in Austrian hydropower plants, as well as for renewable energy projects in the wind power sector in Austria and Germany.

In order to prove the bond’s eligibility as a green bond and the fulfilment of demanding and strict sustainability standards, such as the taking into account of environmentally relevant aspects during planning and operation, working conditions during construction and maintenance, dialogue with affected parties, social standards in the supply chain, as well as the avoidance of CO2 emissions, VERBUND AG has obtained an expert opinion from oekom research AG on the environmental friendliness and sustainability of the selected projects. This is available on the VERBUND AG homepage (http://www.verbund.com/cc/de/investor-relations/finanzierung/anleihen). Furthermore, oekom research will carry out an annual review of adherence to the sustainability criteria.

During the course of the issuance, Peter Kollmann, CFO of Verbund AG, said: "We are very proud that, by means of this green bond, we are able to set a new course in the company’s financing. VERBUND is thus reinforcing its mission statement of being an environmentally friendly and sustainably operating company."

The bond is rated with BBB+ (stable outlook) by Standard & Poor’s and Baa1 (negative outlook) by Moody’s, respectively.

This disclosure does not represent an offer for the sale of any shares, nor is it an offer for the purchase of any shares. Notably, this document does not represent an offer for the sale of shares nor an invitation for the release of an offer for the purchase of shares in the United States or in other jurisdictions in which these could be subject to limitations. The shares may not be offered or sold in the United States or to 'U. S. persons' (as defined in regulation S of the U. S. American Securities Act of 1933, as amended (the 'Securities Act')) or offered or sold for the account of U.S. persons, unless they are registered or exempt from registration requirement in accordance with the Securities Act. In accordance with the Securities Act, the shares are not – and will not be – registered.

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